Tony Blair today launched a "quintessentially New Labour" manifesto which promises rising investment in schools and hospitals without increases in income tax.

Unveiling the 112-page pocket-sized booklet in London's Mermaid theatre, the prime minister told supporters that Labour's programme would give everyone the "chance to succeed and make the most of what they have".

Flanked by the chancellor, Gordon Brown, and other cabinet colleagues, he said that a "strong economy" was at the heart of the party's plans; essential for rising living standards and increased public investment.

The Conservative leader, Michael Howard, dismissed the manifesto, saying voters had "heard it all before", while the Liberal Democrat deputy leader Sir Menzies Campbell warned: "On May 5, Labour will be judged not by what they say, but by what they have done."

Mr Blair promised that the minimum wage would rise from £4.85 to £5.05 and then £5.35 an hour if Labour is re-elected, with tax credits also going up and the New Deal expanded.

On schools and hospitals, he restated Labour's traditional pledge to keep them "free at the point of use" while promising rising investment with "thorough, modernising" reform.

Waiting lists would be cut further in the NHS, schools given greater independence from local government control, and 300,000 apprenticeships established a year.

Mr Blair also outlined a tough message on law and order and immigration and asylum, promising a justice system which put the "victims first" and an immigration system with strict controls and declining asylum claims.

He distanced himself from Tory rhetoric, however, by promising never to "play politics with immigration" and to continue to give asylum to genuine refugees.

Mr Blair concluded by touching on the issue of the party leadership, repeating in the manifesto's preface his pledge to stand down towards the end of his third term.

Without naming a successor, he confirmed this would be his last general election as prime minister but promised his legacy would last: "What this manifesto shows is that when at that election this party is under new leadership it will continue to be the modern, progressive Labour party of the last 10 years," he said.

Despite repeated questioning at the press conference, Mr Blair said he would stand for a full third term but refused to spell out exactly what a "full term" would constitute.

After the 90-minute launch in London, the PM campaigned in Northampton alongside the deputy prime minister John Prescott, but for the first time in days without Gordon Brown.

Mr Prescott taunted a demonstration by the Countryside Alliance, saying: "Thank you for coming out, lovely people, right to roam."

On the key election issue of tax - most of the other policies unveiled today have already been announced as part of the government's five year plans - Labour has repeated its promise not to raise the basic or top rates of income tax in the next parliament. The party also said it would not extend VAT to food, children's clothes, books, newspapers or public transport fares.

Labour has not, however, ruled out increasing national insurance, which it raised by a penny after the last general election in order to increase health spending.

The absence of a commitment on national insurance is likely to be pounced on by the Tories, who earlier this morning claimed that the chancellor, Gordon Brown, would have to raise taxes by £1,000 a year for the average couple if Labour is re-elected.

Ministers can, however, point to the manifesto pledge to continue to make "targeted tax cuts for families and to support work".

Asked whether the party would have to raise taxes if re-elected, Mr Blair insisted that all its programmes could be paid for at existing levels of taxation.

Can we pay for our plans, Mr Blair asked rhetorically, "the answer is an unhesitating yes".

Labour's manifesto has had a painful birth, with reports that the chancellor was angry about being excluded from the process and speculation about whether it would live up to its billing as "unremittingly New Labour".

The final draft appears to represent a compromise between Mr Blair's vision of greater public sector choice and Mr Brown's more traditionally social democratic approach.

This week's joint campaigning by the duo has been much mocked by the opposition, with the Tory leader, Michael Howard, this morning demanding to know when Mr Blair is planning to hand over the premiership to the chancellor.

Oliver Letwin, the shadow chancellor, had earlier accused Mr Brown of facing an £11bn "black hole" if Labour won a third time. He said filling the black hole would require raising national insurance, increasing the tax bill for an average couple earning £22,000 each by £1,000 a year.

Mr Howard renewed the Tory assault when he held the party's second press conference of the day, immediately after the prime minister left the stage at the Mermaid Theatre.

Dismissing Labour's manifesto as "all talk", he told reporters: "There is one thing you can be certain of: if Mr Blair gets in again taxes will go up again."

The Liberal Democrats, meanwhile, will unveil their manifesto tomorrow morning. Its launch was postponed from Tuesday after the wife of the party's leader, Charles Kennedy, went into hospital to give birth to their first child.